The Philippine capital is locked down again, which may affect the shipment of passive components of Samsung and Murata

In order to curb the spread of the Delta variant, the Philippine government recently announced that the capital Metro Manila will resume its lockdown, and a two-week stay-at-home order will be implemented from August 6. The Philippines is a major production center for Japanese and Korean passive component manufacturers such as Murata and Samsung Electronics. Affected by this, shipments from Japanese and Korean factories may be disrupted.

According to Juheng.com, the Philippines is a major production center for Japanese and Korean passive component manufacturers. Samsung Electro-Mechanics (SEMCO)'s local production capacity accounts for 40% of its total production capacity; Murata, a leading passive component manufacturer, also has a 15% production capacity in the Philippines.

Local media Rappler quoted relevant officials as saying that the economic losses from the two-week lockdown are expected to be as high as 210 billion pesos (about 4.2 billion US dollars), and as many as 13 million people will be affected.

In addition to the Philippines, Malaysia, another major passive component production center, has also extended its national lockdown policy indefinitely due to the epidemic. Most local factories can only maintain 60% of their workforce. Considering that this is the traditional peak season for electronic product consumption and the peak demand for passive components, the lockdown measures of the two countries may lead to further tightening of supply. Taiwan media pointed out that the shipments of Japanese and Korean factories have been disrupted, and Yageo and Huaxin Technology are expected to receive transfer orders, thereby driving performance improvement.